U.S stock Futures Advancing Ahead of Inflation Data

The stock futures moving higher today which indicates a continuation of yesterday’s bullish movement. However, traders might stay cautious ahead of the release of inflation data. If the inflation number continues to decrease then the rate-cut might happen more aggressively. In this month’s FOMC meeting, the question is not whether the Fed will cut interest-rate or not. But, the question is whether the Fed will cut 25 bps or 50 bps. A deeper rate-cut might trigger a surprise in the market and could go either way in the short-term. In the longer-term, we still see the stock market will continue its bullish movement.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index turned higher yesterday after a major bearish week. The index seems will attempt to continue the bullish movement and target a new record high. Traders will continue to assume that the index will continue the bullish trend especially when the Fed will start cutting interest-rate. However, if the index resumes the bearish movement this month then it will fulfill the “Rektember” month. Traders will wait for a bearish correction in the index for a chance to add more long positions at a lower level.

Wells Fargo Company (WFC)

WFC share prices are moving inside a triangle pattern which means the trend is sideways. The share prices turned lower after the rejection from the bearish trendline. Traders will expect a test on the bottom of the trendline and a continuation of sideways movement. At the current time, traders will wait for bullish reactions near the bottom of the trendline for a chance to enter long positions.